Iran has exceeded expectations in jumpstarting its oil sector following the implementation of the Joint Comprehensive Plan of Action (JCPOA) on 16 January 2016, which saw the bulk of international sanctions lifted (MEES, 22 January 2016). Crude production rose 20% in 2016 to 3.43mn b/d (MEES, 10 February) while buyers’ imports of Iranian oil grew by more than 50% to 2.02mn b/d (see chart).
As expected the road has been far from smooth. The roll out of new contracts for IOCs to invest in Iran, the Iran Petroleum Contract (IPC), has been frequently delayed. Meanwhile, the expansion of exports is especially notable given issues with obtaining insurance for tankers which are only now being resolved. (CONTINUED - 929 WORDS)
